What was the consolidated net income for Chem Dry for the year ending December 31, 2021?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
| Other Long-term Liabilities | | | | | | Deferred revenue - Net of current portion | | 3,202 | 4,864 | 6,664 | | Deferred tax liabilities (Note 11) | | 3,266 | 3,001 | 5,596 | | Total liabilities | | 14,596 | 15,274 | 21,933 | | | | 70,383 | 115,695 | 122,025 | | Stockholders' Equity | | | | | | Total liabilities and stockholders' equity | | $84,979 | $130,969 | $143,958 |
| Years Ended December 31, 2023, 2022, and 2021 | ||||
|---|---|---|---|---|
| 2023 | 2022 | 2021 | ||
| Net Revenue | $31,072 $ 33,483 | $ 36,232 | ||
| Cost of Revenue | 9,613 9,055 | 10,700 | ||
| Gross Profit | 21,459 24,428 | 25,532 | ||
| Operating Expenses Before Impairment | 20,604 27,789 | 23,079 | ||
| Impairment of Goodwill | 45,537 1,266 | - | ||
| Impairment of Intangible Assets | - 4,952 | - | ||
| Operating (Loss) Income | (44,682) | (9,579) | 2,453 | |
| Nonoperating Income (Expense) | ||||
| Interest income | 496 1 |
Source: Item 23 — Receipts (FDD pages 68–264)
What This Means (2024 FDD)
According to Chem-Dry's 2024 Franchise Disclosure Document, the consolidated net income for the year ending December 31, 2021, was $2,941,000. This figure represents the company's profit after all expenses, including income taxes, have been deducted from its revenues. It is a key indicator of Chem-Dry's overall financial performance and profitability for that year. Note that the amounts are displayed in thousands.
For a prospective Chem-Dry franchisee, this information is useful in assessing the financial health and stability of the company. A positive net income suggests that the company is operating profitably, which can be a reassuring factor for potential investors. It's important to consider this figure in conjunction with other financial data, such as revenue, expenses, and cash flow, to gain a comprehensive understanding of the company's financial performance.
It is also important to note that the independent auditor's report included in the FDD indicates that the consolidated financial statements present fairly the financial position of BFG Holdco, Inc., which includes Chem-Dry, in accordance with accounting principles generally accepted in the United States of America. This provides an additional level of assurance regarding the accuracy and reliability of the financial information presented. Additionally, the FDD mentions that the 2022 financial statements have been restated to correct a misstatement, but the auditor's opinion was not modified with respect to this matter.